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[copper market today] the spot transaction is weak when the high shock of copper in Shanghai is coming at the end of the month.
Jul 30,2020 16:54CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

Introduction to this article: today's Shanghai copper high shock, the upper pressure at 52000 yuan / ton. On the one hand, the FOMC meeting of the Federal Reserve announced that the benchmark interest rate will remain unchanged in the 0.5% range and will continue to release liquidity easing, while the tone of monetary policy easing will remain unchanged, boosting investor confidence. On the other hand, the Fed also reiterated that the outlook for the US economy will depend to a large extent on the development of the novel coronavirus epidemic. At present, the global confirmed case of novel coronavirus has broken through the 17 million mark, and the escalating epidemic crisis of novel coronavirus has made investors look at the economic situation cautiously, thus putting some pressure on copper prices.

A brief comment on SMM

Today's Shanghai copper high shock, the upper pressure at 52000 yuan / ton. On the one hand, the FOMC meeting of the Federal Reserve announced that the benchmark interest rate will remain unchanged in the 0.5% range and will continue to release liquidity easing, while the tone of monetary policy easing will remain unchanged, boosting investor confidence. On the other hand, the Fed also reiterated that the outlook for the US economy will depend to a large extent on the development of the novel coronavirus epidemic. At present, novel coronavirus's confirmed cases around the world have broken through the 17 million mark, and the escalating novel coronavirus epidemic crisis has made investors look at the economic situation cautiously, thus forming a certain pressure on copper prices. Today, the main force of copper in Shanghai opened at 52150 yuan / ton in the morning, which was the highest point in the day at the beginning of trading. After the opening, the short positions put pressure on the copper price, and the price quickly fell to 51810 yuan / ton. after a brief adjustment, the copper price fell again from 51940 yuan / position to about 200 yuan / ton. In the second trading session, the center of gravity of copper prices rose somewhat, closing at 51890 yuan / ton at noon. At the beginning of afternoon trading, it was suppressed by short-sellers. Copper prices crossed the daily average line and went all the way down to explore the intraday low of 51600 yuan / ton. In late trading, it closed at 51690 yuan / ton, down 80 yuan / ton, or 0.15%. Today, the main daily position of Shanghai Copper increased by 2311 to 123000, mainly for short positions, and trading volume increased by 15000 to 152000. 08 during the contract day, positions were reduced by 7198 to 54000, mainly by long positions, while trading volume decreased by 4000 to 29000.

Today, Shanghai copper negative, KDJ opening expansion, but the bottom is still supported by the 5-day, 10-day moving average, copper price callback space is limited. In the evening, waiting for the outer disk guidance, test Shanghai copper rose again to recover the decline.

Spot market

Today, the spot price of electrolytic copper in Shanghai quoted a price of 20 to 90 yuan per ton for that month's contract, 51780 yuan / ton to 51880 yuan / ton for Pingshui copper, and 51840 yuan / ton to 51940 yuan / ton for Shengshui copper. Shanghai copper concussion runs on the first line of 51800 yuan / ton. the morning market holder continued yesterday's market situation to open at 30-40 yuan / ton, good copper 80 yuan 90 yuan / ton, transaction response is not positive enough, under the difficulty of improvement, flat copper leading down to rising water 20 yuan / ton, during the period can be reduced to 10 yuan / ton, good copper source is relatively small, the holder suspended price adjustment, the quotation is stable, concentrated transaction in the rising water range of 80 yuan 90 yuan / ton, the price can be reduced to around 10 yuan / ton, the good copper source is relatively small, the holder suspends the price adjustment, the quotation is stable, and the transaction is concentrated in the rising water range of 80,000yuan / ton, during which the price can be reduced to around 10 yuan / ton. Downstream to maintain a rigid demand to buy, store depressed price space, wet discount expansion, quotation discount 70 ~ 50 yuan / ton. In the last two days of the month, the weak transaction has become a trend, and the holder takes the initiative to give way to the transaction, with obvious characteristics at the end of the month.

Today, the spot price of electrolytic copper in Guangdong is quoted as a discount of 100-30 for that month's contract, with an average price of 25 yuan / ton, while that of wet copper is 150-140, with an average price of 10 yuan / ton. The average price of electrolytic copper is 51780 yuan / ton, while that of wet copper is 51700 yuan / ton. Spot market: Guangdong inventory continues to soar, superimposed consumption is weak (several copper rod factories have to be overhauled until Monday to resume production), so that today's spot market trading is very deserted, the holder has taken the initiative to reduce the price in early trading, flat copper quoted to a discount of 100 yuan / ton, but the discount is too large, the holder no longer downgrade rising water shipment, flat copper basically stable at-100 yuan / ton. Due to the tight supply of good copper and the large discount, many traders want to make warehouse receipts for delivery. As a result, good copper prices are showing a trend of rebounding at a low level. By 11:00, they heard that there was a transaction of-20 yuan per ton. On the other hand, the price of wet-process copper also continued to fall due to the overstock, with today's transaction price at a discount of 140,150 yuan / ton. Overall, weak consumption is the main reason for the recent decline in Shengshui in Guangdong. It is estimated that there will be a significant improvement at the beginning of next week, and Shengshui is expected to remain low tomorrow.

Yangshan copper

Today's warehouse receipt quotation is US $80-93 per ton, the average price is US $4.50 lower than the previous day, and the bill of lading is quoted at US $68-82 per ton, with an average price reduction of US $1.50 per ton compared with the previous day, QP August. The LME0-3 litre water is 8 US dollars / ton, and the import loss is around 300 yuan / ton.

The import window continues to close, and the demand in the foreign trade market remains light. Warehouse receipt prices declined significantly, mainly due to the weakening of domestic consumption and the continuous inflow of non-standard copper, which led to the rapid weakening of wet and common fire warehouse receipt prices and the widening of seller's offer span. at present, the mainstream price of fire warehouse receipt is 85-90 US dollars / ton. The downward trend of the price of the bill of lading remains unchanged, and the recent mainstream fire quotation in Hong Kong has been reduced to less than US $80 / ton. The quotation of Yuanyue bill of lading is relatively strong, and the price of Erpai is more than 90 US dollars / ton.

At present, the transaction price of fire good copper warehouse bill is around US $93 / ton, mainstream fire method is US $88 / ton, wet method is 80 yuan / ton, good copper bill of lading is US $82 / ton, mainstream fire bill of lading is US $76 / ton, and wet method is US $68 / ton.

Inventory

LME copper stocks today were 129225 tonnes, down 2675 tonnes, or 2.03 per cent, from the previous day.

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